Inflation, including in pet food, is finally starting to slow, and economies like the U.S.’s seem to be approaching a “soft landing” (taming prices, spending and job growth without triggering a recession). Yet no one seems to believe we’re completely out of the woods, and that may continue to affect pet owner spending. In this environment, should pet food dial back on premiumization?
The pet food market has been trending toward premium and superpremium for several years, with revenue sales continuing to rise as volume sales have remained mostly flat — and that was before the recent round of hyperinflation, which only heightened the situation. Nearly all the U.S. pet food dollar growth of 12% in 2022 came from rising prices rather than actual sales increases, according to David Sprinkle, director of pet market research for Packaged Facts. Its surveys of U.S. dog and cat owners earlier in 2023 showed 41% consider the high cost of pet food the most significant challenge to pet ownership, while 74% agreed they are concerned about rising pet food prices.
